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The document provides calculations for the Economic Order Quantity (EOQ) based on annual usage, ordering cost, and carrying cost, resulting in an EOQ of 2,846 units. It also details the inventory management of material A using the First In First Out (FIFO) method, including stock receipts and issues for August 2020. The document includes a ledger account showing balances, purchases, and issues with corresponding costs.

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3 views1 page

Material - Key

The document provides calculations for the Economic Order Quantity (EOQ) based on annual usage, ordering cost, and carrying cost, resulting in an EOQ of 2,846 units. It also details the inventory management of material A using the First In First Out (FIFO) method, including stock receipts and issues for August 2020. The document includes a ledger account showing balances, purchases, and issues with corresponding costs.

Uploaded by

jj7561835
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

[Link].Calculate E.O.Q. from the following data.

Annual usage ; 8,10,000 Kgs


Ordering Cost : ₹.10
Cost of storage per year : .20% on Inventory
Ans: EOQ = 2CO =
I
C = Annual Consumption: 8,10,000 Kgs .; O = Ordering Cost per unit : ₹.10
I = Carrying Cost per unit = 10 X 20% = ₹.2

→ 2 X 8,10,000 X 10 = 81,00,000 = 2,846 Units


2
[Link]. The balances of A material is given below. Prepare Stores adopting First in First Out method.
2020 August 1. Opening Stock 1,000 Units @ ₹.5 per unit
Stock receipts: 3. 900 Units per unit @ ₹.6 11. 800 Units per unit @ ₹.6-20
13. 300 Units per unit @ ₹.6-40 19. 200 Units per unit @ ₹.6-50
Issued Stock: August 7. 1,200 Units 15. 400 Units 17. 600 Units 25. 600 Units
Material No: Maximum Stock Level
Code No: Stores Ledger Account (FIFO) Minimum Stock Level
Bin No: Re - Order Level
Purchases Issues Balance
Date Particulars Qty Cost per Qty Cost per Qty Cost per
Total (₹.) Total (₹.) Total (₹.)
Units unit (₹.) Units unit (₹.) Units unit (₹.)
August
Nil Nil Nil Nil Nil Nil 1,000 5-00
1 Balance b/d 5,000
5,000
1000 5-00
August Goods Received Note 900 6-00 5,400 Nil Nil Nil 5,400
900 6-00
3 No: 10,400
1,000 5-00 5,000
August7 Requisition Slip No: Nil Nil Nil 700 6-00 4,200
200 6-00 1,200
August Goods Received Note 700 6-00 4,200
800 6-20 4,960 Nil Nil Nil 4,960 9,160
11 No: 800 6-20
700 6-00 4,200
August Goods Received Note 800 6-20 4,960
300 6-40 1,920 Nil Nil Nil
13 No: 300 6-40 1,920 11,080
300 6-00 1,800
August 800 6-20 4,960
Requisition Slip No: Nil Nil Nil 400 6-00 2,400
15 300 6-40 1,920 8,680

August 300 6-00 1,800 500 6-20 3,100


Requisition Slip No: Nil Nil Nil 1,920 5,020
17 300 6-20 1,860 300 6-40
500 6-20 3,100
August Goods Received Note
200 6-50 1,300 Nil Nil Nil 300 6-40 1,920
19 No:
200 6-50 1,300 6,320
August 500 6-20 3,100 200 6-40 1,280
Requisition Slip No: Nil Nil Nil
25 100 6-40 640 200 6-50 1,300 2,580

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